An settlement between San José and Sharks Sports activities & Leisure guarantees to maintain the NHL franchise within the metropolis till 2051 whereas investing a whole bunch of hundreds of thousands of {dollars} to improve and modernize the SAP Heart.
The settlement — scheduled for Metropolis Council approval later this month — would commit town to offering $325 million of the general $425 million funding and impose stiff penalties on the Sharks ought to they go away town.
“For more than 30 years, Sharks Sports & Entertainment has proudly represented the City of San José and its residents, bringing world-class sports and diverse entertainment events to SAP Center at San José, one of the City of San José’s greatest economic generators,” Sharks Sports activities & Leisure President Jonathan Becher stated in an announcement.
“On August 26, the San José City Council will have the opportunity to cement the legacy of the Sharks in San José by voting to approve a new partnership between SSE and the City of San José to reinvest in SAP Center, keeping the Sharks in San José through the 2050-51 season. Over the last decade, Sharks owner Hasso Plattner has invested well over $100 million into the city-owned venue and is committed to invest at least an additional $100 million to modernize the facility, in conjunction with the City’s efforts to tackle years of deferred infrastructure maintenance in the arena. We are excited about this opportunity and are looking forward to a continued partnership with the City of San José for many years to come.”
The finalized lease settlement between San José and the main sports activities franchise has been anticipated for a couple of months after San José Mayor Matt Mahan introduced that either side had struck a tentative deal throughout his state of town tackle in Might.
The Sharks have referred to as San José dwelling since 1993, taking part in on the city-owned SAP Heart, which the staff has helped improve through the years. The present lease settlement — signed in 2015 — had ensured the staff would play on the enviornment till July 1, 2025, with the lease renewing yearly via 2040. Nonetheless, the staff had hoped town would commit extra investments within the facility.
An financial examine commissioned by the staff in 2023 discovered that Sharks-related actions introduced in $235 million in annual customer spending and created 2,740 jobs. The examine additionally estimated that the franchise introduced in $4 million in annual gross sales tax income.
With downtown’s restoration extra closely tied to the success of the expertise financial system, because the workplace market continues to battle, public officers have acknowledged the significance of protecting the Sharks within the metropolis as they’ve regarded to create a downtown sports activities and leisure district.
As town seems to create a extra cohesive and walkable downtown, the areas surrounding the SAP Heart are additionally set to obtain facelifts as a part of a separate beautification venture to enhance crosswalks, add extra murals, together with on the bridge connecting San Pedro and Little Italy, and cleanups stretching right down to Area Inexperienced.
The investments on the SAP Heart embrace, however will not be restricted to, renovations to maintain the realm as much as NHL necessities, architectural and leisure enhancements, and code upgrades.
Town may even be required to enhance the parking across the enviornment, together with demonstrating the supply of three,175 areas on the streets and in tons inside a 3rd of a mile and an extra 6,350 areas inside a half mile.
Ought to town fail to stay as much as its funding obligations, the settlement imposes a $200 million penalty in 2026-2027, with the price dropping to $70 million in 2030-2031.
The Sharks face probably harsher penalties if San José is not their dwelling base. Early termination of the settlement would begin at $100 million in 2025-2026 earlier than growing as much as $549 million in 2030-2031. The price would then lower by $10 million up till 2047-2048.
The settlement additionally defines phrases for figuring out and reserving a website, spanning a minimum of 12 acres, for a brand new city-owned enviornment.
“The average lifespan of a shark is 20-30 years — and our Sharks are devoting at least one more lifetime to San José,” Mahan stated. “Our world-class team deserves a world-class arena, and South Bay fans deserve a modern, smooth, and memorable game-time experience. That’s what this deal is all about – serving this generation of San Joséans and the next.”
Initially Revealed: August 15, 2025 at 6:45 PM PDT
